NOC implements automated pricing system for petroleum products

July 17, Kathmandu: The Government of Nepal (GoN) has introduced the Automatic Pricing System (APS) for petroleum products. The Nepal Oil Corporation (NOC), operating under the Ministry of Industry, Commerce, and Supplies (MoICS), on Sunday, announced that the APS will be enforced for petrol, diesel, and LPG cylinders from 12:00 AM Monday.

Madhu Kumar Marasini, Secretary at MoICS, revealed during a press conference that the decision to implement APS was made during a meeting of the NOC’s Board of Directors on Sunday. The move aims to benefit consumers, providing them with relief. However, aviation fuel prices will remain unaffected by this decision.

Under the APS, the retail price of petrol has been reduced by Rs 6 per litre, diesel by Rs 4 per litre, and LPG gas cylinders by Rs 10. In the Kathmandu Valley, the new prices for petrol and diesel stand at Rs 164 per litre. It should be noted that prices may vary in other regions of the country, as stated by the MoICS.

Furthermore, the cost of one LPG cylinder has decreased from Rs 1,800 to Rs 1,700 due to the implementation of APS.

The introduction of APS follows the NOC’s payment of Rs 31 billion to the Indian Oil Corporation, as informed by the authorities.

Additionally, the NOC still has outstanding debts amounting to Rs 29 billion, even after receiving a loan of Rs 7 billion from the government of Nepal last year. Half of the loan, approximately Rs 3.5 billion, remains to be repaid.

The APS is expected to enhance transparency and streamline the pricing mechanism for petroleum products in Nepal, providing relief to both the general public and entrepreneurs.